Al-Khafji is set to become a new coastal tourism and residential destination.

Saudi Arabia’s Public Investment Fund (PIF) has launched Gulf Coast Development Company to develop an integrated coastal destination in Al-Khafji, Eastern Province. The project reflects the Kingdom’s growing focus on unlocking new tourism and real estate opportunities beyond its major cities, while strengthening the economic potential of strategically located regions.

Spanning around 20 square kilometres with a 10-kilometre waterfront, the development will feature eight residential neighborhoods with more than 16000 housing units, around 1400 hotel keys, along with commercial, tourism and educational facilities and boat marinas. Planned in three phases, the first phase is targeted for completion in 2030. PIF will develop the destination in partnership with the private sector and local and regional investors, creating opportunities across real estate, hospitality, tourism, infrastructure and supporting services.

The Al-Khafji development is more than a coastal real estate project. It reflects a broader shift in Saudi Arabia’s development strategy – building integrated ecosystems that connect investment, tourism, infrastructure and private-sector participation. As PIF moves into its 2026-2030 strategy, focused on long-term value creation and stronger private-sector involvement, projects like this could help open new markets and reshape regional growth across the Kingdom.